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New Year's Message from the Chariman, Huang Chiu Yeung | Ready to Set Off Again After Reaching Our 100 Billion Goal
2020.12.30
2829

To all employees of China SCE,

Time flies and the year 2020 with ups and downs will soon be over. Just recently on 20 December, China SCE achieved its goal of exceeding sales of RMB100 billion, it was determined to fulfil its promises in difficult times after three decades from establishment, realising the strategic goal of 100 billion scale as scheduled.

2020 is a meaningful year with milestone. In early 2020, China SCE had a confident plan for the year. The COVID-19 pandemic outbreak that hit us in the second half of January all of a sudden left everyone feeling powerless. Sales in the first quarter dropped sharply and we began to consider lowering our annual sales target. As the pandemic was gradually and effectively controlled, China SCE was determined and was confident to say, "It doesn't matter how difficult it is, we will achieve the goal!"

In 2020, China SCE stays on track regardless of any difficulties, we dare to take challenges of growth, implemented property development as the primary business and the FUNWORLD and FUNLIVE as synergic business activities, with the development strategy of primary business supplemented by synergic business activities with determination, and by relying on the improvement of organisational capacity, persistent efforts of all staff, and the trust and support from customers, we have finally achieved the 100 billion goal.  

This year, we focused on strategic certainties, promoted primary business supplemented by synergic business activities with determination and completed the comprehensive upgrade of brand image of the FUN series.+ As of 30 December, China SCE acquired 41 premium land parcels during the year with a land reserve area of over 30 million m² and a saleable value of over RMB280 billion. SCE Commercial Management accelerated the implementation of "100 FUNWORLD Programme", with 20 newly developed buildings in FUNWORLD and 41 projects in operation or under construction, and is listed in "2020 Commercial Real Estate Company Brand Value Top 10" for the first time, gaining recognition for its comprehensive strength from the industry. FUNLIVE Apartments receive US$500 million investment from Middle-east sovereign wealth funds based on its unique business model and steady operation. Amidst the turmoil in the long-term apartment industry, FUNLIVE Apartments has stood out from the crowd by showing its vitality, winning recognition and positive reputation in the capital market.

This year, we focus on ensuring its operation, and are determined to meet head-on with the most difficult problems related to project management and marketing, and by optimising human resources allocation and reforming the incentive mechanism, establish our business capability on each project to achieve growth with quality and scale. The "1469" development model has significantly improved the development and operational efficiency of the complex, ensuring a positive cash flow cycle and the opening of the complex as scheduled, and continuing to deliver our operational capabilities. With an average occupancy rate of over 92% and a high lease renewal rate of FUNLIVE, we have demonstrated our low-cost operating advantages and continued to deliver our investment capabilities, gaining the confidence and trust of our fund investors.

This year, we focused on organisational certainties and continued to optimise the management and control model to empower employees. Through structural changes, our organisation has become less hierarchical, and is more resilient for development, and our organisational effectiveness has continued to enhance. Our management trainee training programme "1,000 people in 3 years" has reached its final stage as scheduled, and our "Lingfeng Programme" that focuses on leadership and our "Overseas Programme" for middle and senior management are upgraded. Our strategic and cultural aspects are promoted at the frontline, and we continue to intensively practice "loving charity" and participate in donation for the pandemic without hesitation, and continued to reinforce cultures, leading the team with continuous iterative cognition and driving development with reinforced consensus.

Because of the certainty we have in the strategy, business model and organisation, China SCE can find the direction within the uncertain market environment and steadily move forward in the intensive competition of the industry, fulfilling the promise of the 100 billion target. We believe that fulfilling a promise is an attitude, and continuously fulfilling a promise is ability.

I would like to take this chance to express my most sincere appreciation and respect to all my colleagues. It is your hard work that enabled China SCE to climb over the mountains and strive towards the ocean of our 100 billion goal.

There will be more storms after we have reached our 100 billion goal, but it is amidst the storm we can show our true nature as a hero. Let's set off again in 2021!

We set off again to maintain our strategic determination. In the future, the demand for real estate will remain in the long-saturated buyer market, and the real estate industry will enter a state of continuous intensive competition. China SCE is under the double pressure of scale development and transformation, and the challenges ahead are immense. For this reason, we must be determined to establish the strategic direction and strategic determination of primary business supplemented by synergic business activities, so as to solve the certainty of investment and operation. We will continue to optimise investment structure and focus on exploring the cities. Taking the operating results and cash flow as the guide for direction, with project management and marketing as the synergic business activities and promote project operation efficiency, consolidate as one and expand the synergic business activities.

We set off again and will stay on track for our transformation. Through department store operation and digital operation of shopping malls, China SCE will realise and continuously enhance its commercial operation capability, aiming for H-share listing, and providing a longer-term foundation for the sustainable development.

Through precise investment and operational capacity enhancement, the FUNLIVE Company will further consolidate and iterate the business model of FUNLIVE Apartments, attracting more international fund investment and outstanding talents, and aiming to become the most competitive leader in the long-term rental apartment industry.

We set off again and our organisational capacity remains at the core of our management. We will intensify the consensus-driven and organisational changes, further adjust and optimise incentive systems, provide more resources to the frontline, and build an organisation that is more efficient and flexible to achieve a sustainable growth and advancement. We will continue to empower our employees and provide them with a platform for better development, so that they can grow together with the Company, as employees are the foundation of our long-term development.

We set off again and our vision is to lead a better life. We will continue to provide products and services that exceed the expectations of our customers, and create a "FUN+ Happy Life" ecosystem by combining living scenarios including everyday living, shopping centres and long-term rental apartments, with smart technology, in order to create a beautiful lifestyle and spatiial experience. To satisfy the needs of our customers is our driving force to keep us moving forward; customer orientation is our KPI and the goal and direction of our work.

Our road ahead is endless and long, but this is still the best of times. Some say that the importance of the year 2020 could be comparable to the founding of the country in 1949 and the reform and opening up in 1978. In the future, the mutual circulation of domestic and international development will bring unprecedented upgraded consumption and sinking market, which will bring infinite opportunities. China's Confucian culture and the desire of Chinese to change their destiny are still guiding us forward.

In this way, let's work together in 2021 in the best times, together we march towards a better future.